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10 November, 2021
NAKO and Ukroboronprom deepen cooperation in implementation of Law №1630-IX

Strengthening the partnership aims to support the transformation of the national defenсe industry. In particular, it is a question of implementing the Law on reforming state defence industry enterprises. Thus, NAKO will be involved in the corporatization preparations, will provide an expert assessment of the company’s charter, and will participate in the selection of the new supervisory board members and the nomination committee’s activities.

These areas of cooperation are defined in the Memorandum that the parties signed on November 10.

Thus, for the implementation of the law on corporatization, NAKO will focus on the following:

  • A charter that meets the corporate governance standards of the Organisation for Economic Co-operation and Development (OECD);
  • The selection process for the supervisory board and the composition of the supervisory board, as well as the powers that will be assigned to the supervisory board;
  • The transparency of the transformation and movement of assets and property.

“Public oversight of the concern’s transformation is very important, as risks to reforms in Ukraine arise during the implementation of relevant laws,” said Olena Tregub, NAKO’s Executive Director.

Yuriy Husyev, Director General of Ukroboronprom, added that in the process of transforming the concern, it is important to be as transparent and open as possible to civil society and international partners.

The Verkhovna Rada supported the Law on Reforming Ukroboronprom in July this year, and the Law officially entered into force on October 6. Full-scale reform of Ukroboronprom should begin with the relevant decision of the Cabinet of Ministers, which will launch the concern’s corporatization. As a result, Ukroboronprom will be liquidated, and a joint-stock company will be established in its place, which will operate in accordance with international corporate governance standards.